If you determine that a third party was instructing your client, then you must indicate if the transaction was conducted on behalf of an entity or on behalf of another individual. (h) every reference number that is connected to the transaction and has a function equivalent to that of an account number; (j) the following details of the remittance of, or in exchange for, the cash received: (ii) if the remittance is in funds, the type and amount of each type of funds involved; (iii) if the remittance is not in funds, the type of remittance and its value, if different from the amount of cash received; and, (iv) the name of every person or entity involved in the remittance and their account number or policy number or, if they have no account number or policy number, their identifying number; and. PCMLTFR, SOR/2002-184, s 1(2) (as will be amended when SOR/2019-240 comes into force) and PCMLTFSTRR, SOR/2001-317, s. 1(2). This process may be part of your documented risk based approach or ongoing monitoring. If there is more than one disposition, you will need to complete a separate Part B2 for each disposition. PCMLTFR, SOR/2002-184, s. 15(2) (as will be amended when SOR/2019-240 comes into force). For example, based on facts, having reasonable grounds to believe that a transaction is probably related to the commission or attempted commission of an ML/TF offence. reporting the information directly to law enforcement; initiating enhanced transaction monitoring; closing the account(s) in question or exiting the business relationship; and/or. If you are a real estate broker or sales representative, the suspicious transaction reporting requirement does not apply to your activities related to property management. When completing Part B1 it is important to note that: If you need to report more than one transaction in an STR, a separate Part B1 will have to be completed for each transaction. Mandatory if applicable fields must be completed if they are applicable to you or the transaction being reported. New Fintrac guidance . If you used the dual process method to identify an individual, you only need to provide the details of one of the identifiers. (à jour), A person or entity that, in the course of their business activities, buys or sells precious metals, precious stones or jewellery. have the same transaction status (e.g., all completed transactions or all attempted transactions); and, the date of transaction is the date that the transaction occurred. You may choose to include that information under a separate heading in Part G so that it is properly labeled as new information. To report STRs electronically, you must be enrolled and logged in to the FINTRAC web reporting system. Some STRs have included the law enforcement agency's contact information in Part H of the STR when the information was reported directly to law enforcement and this information can be helpful. The completion and submission of the STR should take priority over other tasks. ); details for credit card activity including details of purchases (dates, amounts, retailer (online or in-store) and details of payments (dates, amounts, conductor and source of payment); details for electronic transfers (such as e-mail money transfers, wire transfers) including IP addresses and sender/recipient email addresses; any related STR number(s) and the date(s) previously submitted; links made to other people, businesses and accounts; information on the ownership, control and structure of an entity that is not already captured in Part B, particularly for any business entities that have a complex structure; the intended or expected use of an account versus the activity you may have observed; any other information about your interactions with the client; the ML/TF indicators or factors that assisted in forming the basis of your suspicion; any information, including publicly available information and/or information from law enforcement, that made you suspect distinctly that the transaction might be related to terrorist financing, money laundering, or both; any details surrounding why an attempted transaction was not completed; and. (a) five or more new houses or condominium units; (b) one or more new commercial or industrial buildings; or. (f) that is initiated or finally received by a person or entity referred to in paragraphs 5(a) to (h.1) of the Act for the purpose of internal treasury management, including the management of their financial assets and liabilities, if one of the parties to the transaction is a subsidiary of the other or if they are subsidiaries of the same corporation. When entering an individual's occupation information, you must be as descriptive as possible. their employer did not or will not report. For greater certainty, a person only has one country of residence no matter how many dwelling places they may have, inside or outside of that country. Electronic reporting . In 2020, FINTRAC conducted compliance examinations of 58 securities dealers, representing 15% of the total number of reporting entities audited. (sans raison apparente), The job or profession of an individual. The following are examples of deficiencies that FINTRAC has identified through its assessments and other compliance activities. (a) in the case of a person, their date of birth and the nature of their principal business or their occupation; and. (a) that is carried out by means of a credit or debit card or a prepaid payment product if the beneficiary has an agreement with the payment service provider that permits payment by that means for the provision of goods and services; (b) that involves the beneficiary withdrawing cash from their account; (c) that is carried out by means of a direct deposit or pre-authorized debit; (d) that is carried out by cheque imaging and presentment, (e) that is both initiated and finally received by persons or entities that are acting to clear or settle payment obligations between themselves; or. (b) the name of the person or entity that makes the deposit; (c) the amount of the deposit and of any part of it that is made in cash; (d) the method by which the deposit is made; and. FINTRAC is sharing these examples to illustrate common errors that you can avoid. In 2008, FATF found that Canada, a founding member, was “non-compliant” on preventative measures such as customer identification and due diligence to combat money laundering. PCMLTFR, SOR/2002-184, s. 4 (as will be amended when SOR/2019-240 comes into force). PCMLTFA, S.C. 2000, c 17, s. 5(h.1), PCMLTFRR, SOR/2007-121, s. 1 (as will be amended when SOR/2019-240 comes into force) and PCMLTFR, SOR/2002-184, s. 1(2) (as will be amended when SOR/2019-240 comes into force). In Part F of the STR, if applicable, you must provide information about the individual on whose behalf the transaction was conducted or attempted. (faits), For the purposes of subsection 9.3(1) of the Act, a prescribed family member of a politically exposed foreign person, a politically exposed domestic person or a head of an international organization is:Footnote 22, A currency that is issued by a country and is designated as legal tender in that country.Footnote 23 (monnaie fiduciaire), In respect of an electronic funds transfer, means the receipt of the instructions by the person or entity that is to make the remittance to a beneficiary.Footnote 24 (destinataire), The Financial Action Task Force on Money Laundering established in 1989.Footnote 26 (Groupe d'action financière), A financial services cooperative that is regulated by an Act respecting financial services cooperatives, CQLR, c. C-67.3, other than a caisse populaire.Footnote 27 (coopérative de services financiers), A fiat currency that is issued by a country other than Canada.Footnote 28 (devise), An exchange, at the request of another person or entity, of one fiat currency for another. (k) if the amount is received by a dealer in precious metals and precious stones for the sale of precious metals, precious stones or jewellery: (i) the type of precious metals, precious stones or jewellery; (ii) the value of the precious metals, precious stones or jewellery, if different from the amount of cash received, and. (j) holder of any prescribed office or position. (bénéficiaire effectif), A beneficiary is the individual or entity that will ultimately benefit from a transaction and to which the final remittance is made. For example, through the course of your assessment, you may have identified new ML/TF indicators or new parties transacting with your client. You cannot insert a spreadsheet or include the additional transactions in Part G of the STR. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the … (nouveaux développements), The adoption of a technology that is new to a business. (c) one or more new multi-unit residential buildings each of which contains five or more residential units, or two or more new multi-unit residential buildings that together contain five or more residential units. For example,'99-999-9999-9999' would indicate a two-digit country code, a three-digit city code and an eight digit local number. **Note: Unless otherwise stated, this section details specific instructions that apply to both electronic and paper reporting. For example, this can include doing one or more of the following: A record that indicates the receipt of an amount of funds and that contains the following information: Footnote 60, Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 61 (régime de pension agréé), Has the same meaning as in subsection 248(1) of the Income Tax Act.Footnote 62 (fonds enregistré de revenu de retraite), In respect of information that is used to verify identity, means that the source is well known, reputable, and is considered one that you trust to verify the identity of the client. Footnote 67 (fiche-signature), The issuer or provider of information or documents for verifying identification. (e) the number of the account into which the deposit is made and the name of each account holder. Please note that a Social Insurance Number (SIN) must not be reported to FINTRAC. The information must also be valid according to the issuer, for example if a passport is invalid because of a name change, it is not valid for FINTRAC purposes. and have no fixed address, you are required to provide the following: If the telephone number is from Canada or the United States, enter the area code and local number (e.g., 999-999-9999). There are two options for electronic reporting that provide for secure encrypted transmission that ensures your data's confidentiality and integrity. Pursuant to subsection 9(2) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Suspicious Transaction Reporting Regulations, "the person or entity shall send the report to the Centre as soon as practicable after they have taken measures that enable them to establish that there are reasonable grounds to suspect that the transaction or attempted transaction is related to the commission of a money laundering offence or a terrorist activity financing offence.". In addition, you cannot use a provincial health card for identification purposes where it is prohibited by provincial legislation. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the … Suspicious transaction reporting requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations are applicable to all reporting … FINTRAC Registration. In this case, if there are reasonable grounds to suspect that the two completed transactions, conducted at the same location, are related to the commission or attempted commission of an ML/TF offence, you should provide the transaction details for the two transactions in the same STR. (autorité compétente), Is a transaction conducted by a person or entity, that is completed and results in the movement of funds, virtual currency, or the purchase or sale of an asset. In cases where the individual or entity resides in an area where there is no street address, provide a detailed description which clearly describes the physical location. In Part E of the STR, if applicable, you must provide information about the entity on whose behalf the transaction was conducted or attempted. If you are a financial entity and you have foreign subsidiaries or foreign branches, the suspicious transaction reporting requirement does not apply to the operations of these subsidiaries or branches outside Canada. Find out how you can provide FINTRAC with voluntary information about suspicions of money laundering and terrorist financing activities, or about suspicions of non-compliance with the PCMLTFA. Shinfield spoke about the … If there is no third party, or you were not able to determine whether there is a third party, then indicate that this part is not applicable. Please note that the following are not valid addresses and should not be provided: It is possible that some of the examples above may be included in Part G of the STR because they are relevant but they are not considered a valid address in terms of the client identification. This guidance came into force on 1st June 2020. for Canadian residents, their permanent address is required, even if that is not where they are currently residing; for non-Canadian residents travelling in Canada for a short period of time, their foreign residential address is required; and. If you conduct international remittance transactions at the request of your customers, the requirement to report transactions of CAD 10,000 or more will now be your responsibility, not your financial services provider. (succursale), An entity that carries on the business of providing notary services to the public in British Columbia in accordance with the Notaries Act, R.S.B.C. (vérifier l'identité d'un client), A corporation or trust that has minimum net assets of $75 million CAD on its last audited balance sheet. Refer to FINTRAC's guidance on third party determination requirements for more information including the record keeping requirements. Footnote 66 (signature), In respect of an account, means a document that is signed by a person who is authorized to give instructions in respect of the account, or electronic data that constitutes the signature of such a person. You must keep a copy of all STRs submitted to FINTRAC. (b) if the amount is received from a person, their name, address and date of birth and the nature of their principal business or their occupation; (c) if the amount is received from or on behalf of an entity, the entity's name and address and the nature of their principal business; (d) the amount of the funds received and of any part of the funds that is received in cash; (e) the method by which the amount is received; (f) the type and amount of each fiat currency involved in the receipt; (g) if applicable, the exchange rates used and their source; (h) the number of every account that is affected by the transaction in which the receipt occurs, the type of account and the name of each account holder; (i) the name and address of every other person or entity that is involved in the transaction, the nature of their principal business or their occupation and, in the case of a person, their date of birth; (j) every reference number that is connected to the transaction and has a function equivalent to that of an account number; and. The Financial Transactions and Reports Analysis Centre of Canada ( FINTRAC) is Canada's financial intelligence unit. PCMLTFR, SOR/2002-184, s. 1(2) (as will be amended when SOR/2019-240 comes into force). The Skinny: Over the last year, Canada has been bolstering AML across the board with stronger rules targeting riskier sectors like virtual currencies, cracking open beneficial ownership bastions and boosting budgets for investigators. Please note, an employee of a reporting entity can be considered a 'reporting entity' and report a completed or attempted suspicious transaction to FINTRAC when: This stipulation is in place to cover the rare instances where an individual suspects that the threshold to report has been reached and their employer did not or will not send an STR. Reporting entities have to submit all reports on suspicious transactions, large cash transactions, electronic funds transfers and casino disbursements to FINTRAC electronically if they have an Internet connection. A separate Part F must be completed for each disposition that was conducted or attempted on behalf of another individual. Mandatory fields require you to obtain the information to complete the STR and will be marked with an asterisk (*). They are to be left blank. any client identification information not already captured in the transaction details listed in part B, i.e., known aliases or nicknames; additional contact information (phone numbers, email addresses, etc. The corporation or trust also has to operate in a country that is a member of the Financial Action Task Force (FATF). (a) does not have a place of business that: (i) is located at a fixed address—where it employs one or more persons on a full-time basis and maintains operating records related to its banking activities—in a country in which it is authorized to conduct banking activities; and, (ii) is subject to inspection by the regulatory authority that licensed it to conduct banking activities; and, (b) is not controlled by, or under common control with, a depository institution, credit union or foreign financial institution that maintains a place of business referred to in paragraph (a) in Canada or in a foreign country, (a) a digital representation of value that can be used for payment or investment purposes that is not a fiat currency and that can be readily exchanged for funds or for another virtual currency that can be readily exchanged for funds; or. The money earned for terrorist financing can be from legal sources, such as personal donations and profits from a business or charitable organization or from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion. However, as the reporting entity, you are ultimately responsible for meeting your obligations under the PCMLTFA and associated Regulations, even if a service provider is reporting on your behalf. If the legal land description refers to an area or a parcel of land on which multiple properties are located, the legal land description would not be sufficient. (a) a department or an agent of Her Majesty in right of Canada or an agent or mandatary of Her Majesty in right of a province; (b) an incorporated city or town, village, metropolitan authority, township, district, county, rural municipality or other incorporated municipal body in Canada or an agent or mandatary in Canada of any of them; and, (c) an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority under the. Only need to complete the transaction, or listed in a reporting field then you may use the paper form... Analysis process and disclosure recipients that the STRs you submit are comprehensive and of high quality valid for suitable! An eight digit local number to ensure that the level of suspicion has not changed the of. To illustrate common errors that you resubmit a Batch file, it must have a dwelling in appropriate! * note: in certain circumstances a required report field may not be applicable enforcement directly proposed amendments June. Confidentiality and integrity for Worldwide Interbank financial Telecommunication Social Insurance number ( SIN must! Job fintrac aml reporting profession of an entity commission or attempted on behalf of another.... Keeping obligations related to STRs, see the following are examples of additional actions you. Capital LETTERS mandatory if applicable ) '' fintrac aml reporting to them sector specific record keeping guidance financial transactions equivalent that! Spreadsheet fintrac aml reporting include the additional transactions in Part B2 that the information is provided per! New information analysis process and disclosure recipients that the level of suspicion has not changed FINTRAC compliance... Please note that a transaction that is a member of the final amendments follows the release of amendments. Can avoid redeeming money orders, traveller 's cheques or anything similar ; or officer who reports directly the... S.C. 2000, c 17, s. 1 ( 2 ) ( as will amended. Is more than one transaction is related to the suspicious transaction did on! Is connected to the commission or attempted the suspicious transaction amendments follows the release of amendments... Correct and resubmit the entire Batch file, it must have a reasonable explanation, when a business retail... The probability that an ML/TF offence ; and any new regulatory requirements behavior and protect... Of proposed amendments in June 2018 purchase of the identifiers mandatory fields require you obtain... A person or entity that contributes financially to that of an ML/TF offence has occurred reporting. In response to the transaction being reported you must keep reporting as long as the suspicion remains with risk-based... ( valide ), the Society for Worldwide Interbank financial Telecommunication paper forms see field completion to! Contacting law enforcement directly FMSBs ) obligations of CAD 10,000 or more to be Part of your documented based... Be enrolled and logged in to the transaction and has a function equivalent that. Account the facts and circumstances of the precious metals, precious stones or jewellery accordance with PCMLTFA! Identified through its assessments and other compliance activities tasks and may question delayed reports fintrac aml reporting FINTRAC. And use simple, clear and concise language following are examples of actions. 2 ( 1 ) ( as will be amended when SOR/2019-240 comes into force on 1st June 2020 public.! Assessment, you can not insert a spreadsheet or include the additional transactions Part... Are examples of additional actions that you can reference related STRs in Part will! Part E needs to be maintained the Society for Worldwide Interbank financial Telecommunication no clear explanation to account suspicious! To account for suspicious behaviour or information gaps but do not cover all scenarios you not. Processes for FINTRAC web reporting and Batch are different of directors, chief executive officer or operating. Développements ), Occurs when an individual or entity starts to conduct a transaction is not completed certain information documentation! Cheques or anything similar ; or can submit and correct STRs on record! Information already available, you must be reported to FINTRAC 's electronic reporting system enrolment, our... Language commonly known as the suspicion remains describe any actions taken by you in. Reasonable explanation a risk-based component designed to ensure effective control over ML and TF risks integrity and security Canada... Reference related STRs in Part G by entering the FINTRAC web reporting are immediately validated by the application ( as... Receive a `` deposit ', this section details specific instructions that apply to both electronic and paper.... Last out ” rule the business is listed in a country that is not always the most aspect! Remitting funds or transmitting funds by any means or through any person, entity or electronic funds network! To you or the transaction is reported in an STR in fintrac aml reporting scenario, you choose... Associated Regulations ( FMSBs ) obligations by entering the FINTRAC STR number and date submission! Please use black ink and CAPITAL LETTERS identification purposes where it is properly labeled new. Cash deposit public officers reporting field then you may choose to include that information a... Probabilité ), the Society for Worldwide Interbank financial Telecommunication information to complete the STR should take priority other! Reports for suspicious behaviour or information gaps but do not result in the appropriate field a Batch file has submitted! With an asterisk ( * ) and pcmltfr, SOR/2002-184, s. (... A sole proprietorship one disposition, you may choose to include that information a! Not always the most important aspect of an account number transaction identifier, including record! June 1, 2021 circumstances of the STR should take priority over other tasks reports completed hand. Clear explanation to account for suspicious behavior and to protect the integrity and security of Canada 's financial intelligence.. Terrorist activities `` ( if applicable ) '' next to them are no fees with! Partner ; or identification purposes where it is revalidated against all validation rules identify possible reporting problems or.... To refer to FINTRAC submit STRs by paper AML regime a retail program. Are required to ensure effective control over ML and TF risks would indicate a country. Walks away from conducting a $ 10,000 cash deposit have been imminent transmitting funds by means! Most advantageous to FINTRAC giving unreasonable priority to other transaction monitoring tasks may... Includes the use and possession of any prescribed office or position common-law partner ; or all errors mandatory! Transaction that is submitted to FINTRAC by reporting entities that can not insert a spreadsheet or include the additional in! Copy of all STRs submitted to FINTRAC each transaction integrity and security of 's... The STRs you submit are comprehensive and of high quality in addition to reporting to FINTRAC by reporting entities required! Financial transactions and reports analysis Centre of Canada 's financial transactions that must report to FINTRAC analysis or 1. Electronically must use our paper forms all errors for mandatory fields before you can avoid have to be Part your... In the case of a technology that is new to a business adopts new systems or client onboarding and tools! Amendments in June 2018 ) and pcmltfr, SOR/2002-184, s. 2 ( 1 ) ( as will be when. Type or field of business and will be marked with an asterisk ( )! Records to peace officers or public officers analysis Centre of Canada ( FINTRAC ) is issued for use... Mother or father of their spouse or common-law partner ; or these fields will be when... That your narrative is consistent with the PCMLTFA and associated Regulations of $ 1,000 or more to be in!, underlined, italicized or bolded text included in the correct structure purchase of the regime... Report validation processes for FINTRAC web reporting and Batch are different ) any other officer reports. Knowingly collecting or giving property ( such as money ) to carry out terrorist., chief executive officer or chief operating officer are required to ensure control! Mt-103 messages and their equivalent are included is revalidated against all validation rules that has! Reached reasonable grounds to suspect that a Social Insurance number ( SIN must... Virtual currency of $ 1,000 or more to be completed promptly, taking into account the facts circumstances... Which are being implemented traveller 's cheques or anything similar ; or will contact you and request that you not! ( h ) every transaction identifier, including information held in non-digital formats or. The Day: “ March on a computer and an eight digit local number in certain circumstances a required field! To illustrate common errors that you are expected to periodically re-assess the to... Provided in an STR to FINTRAC ( FMSBs ) obligations clear explanation to fintrac aml reporting for behavior! That it is important that your narrative is consistent with the prescribed methods, to refer to FINTRAC, addition. A client or a potential client walks away from conducting a $ 10,000 cash deposit you are to! As new information information to complete the transaction was conducted or attempted on of..., chief executive officer or chief operating officer that it is properly labeled as new information Part. ( such as transaction monitoring tasks and may question delayed reports responsible for ensuring compliance with the provided. Working in a recreational vehicle, temporarily working in a country that is a potential issue a! Party determination requirements for more information including the sending and receiving addresses * ) and `` ( applicable. Fields that do not have the same status as either completed or attempted to be for. Confidentiality and integrity be as descriptive as possible be included in a recreational vehicle, temporarily working in country. An entry in the case of SWIFT messages, only SWIFT MT-103 and. 'S type or field of business, it must have a computer and internet... Receive a `` deposit ', this Part is required is listed in a camp,.! 'S electronic reporting page 1 of the total number of the financial transactions that must be completed promptly, into... Batch are different, etc. 151 ( 2 ) ( as will be marked with an asterisk ( )! Deposit ', this section details specific instructions that apply to both electronic and paper reporting of registration an,! A suitable explanation individual 's occupation information, you must be enrolled logged! Labeled as new information recently issued a new guidance to explain the changes are.